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CA Final · Financial Reporting · Ind AS 1 Presentation of Financial Statements

Meghna Pharma Ltd prepares Ind AS statements. Its accountant labels the primary statements 'Statement of Financial Position' and 'Statement of Profit or Loss and Other Comprehensive Income', and refers to 'authorisation of the financial statements for issue'. Which terminology does Ind AS 1, as compared with IAS 1, require?

Ind AS 1 requires the terms 'balance sheet' and 'Statement of Profit and Loss', and uses 'approval of the financial statements for issue' instead of 'authorisation'. It removes the IAS 1 option for entities to choose different titles, so Meghna Pharma's labels are not in line with Ind AS 1.

  1. ABalance sheet; Statement of Profit and Loss; approval of the financial statements for issueCorrect
  2. BStatement of financial position; Statement of Profit and Loss; authorisation for issue
  3. CBalance sheet; Statement of profit and loss and other comprehensive income; authorisation for issue
  4. DEntities may choose any titles, provided they are used consistently

Explanation

Ind AS 1 uses 'balance sheet' instead of 'statement of financial position' and 'Statement of Profit and Loss' instead of the IAS 1 title. It also uses 'approval of the financial statements for issue' for events after the reporting period. Choice of titles was removed, so the free-choice option is wrong.

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